Worried about IB background check - poor credit (8 late payments + $22.5k charge off)
Hi all, I have 8 late payments, a $20k charge off on an Amex Plat, and another $2.5k charge off on an Amex Gold on my credit report. Both cards were closed by Amex. These were due to financial hardship due to losing my job due to work visa issues (I am a foreigner) and didn't want to ask my parents for help. I have recently repaid everything and cleared all my debts, but am unsure if these records will still be a major red flag that gets a job offer rescinded in the future during credit background checks. Given how strict BB/EBs are these days, does anyone have any experience or insights on whether these records would be an instant dealbreaker that gets an IB offer rescinded despite it having occurred years ago and that everything has already been paid off? For context, I will be pursuing an MBA at Booth under then deferred 2+2 program which means I may matriculate after only getting ~2 years of full-time work experience. I intend to recruit for BB/EB IB at Booth which would be only 2-3 years later. My credit score is currently 510 which should rise by then. My concern is that these records also reflect poor financial responsibility / accountability / risk for the company's safety and am unsure how HR would interpret this. As mentioned, BB/EBs may have these strict black-and-white compliance procedures that HR may have to follow even if they wish to overlook it; not sure what these policies are. Other than that, my background is clean with no criminal record and no bankruptcies / legal action ever taken against me. Would really appreciate any insights, thank you.
These policies are not black and white. If you repaid it and it was a while ago, you won't have any problem - just have proof of that ready.
Also, when did this happen? It all falls off your credit report after 7 years, but also if you've paid the debt you should be able to negotiate with Amex to delete those from your credit report. Look into it (but don't pay a scammy company to do that for you, you can work directly with Amex).
Bad credit score is just used as a red flag to look into further but is not automatically disqualifying... if you (currently) have a ton of delinquent accounts / are in a huge amount of debt, you may be a risk to the bank. Someone who got in a bad situation years ago and has fully repaid, not an issue. I think you will be fine.
Definitely heard people not passing background checks due to credit, Im pretty sure if you just pay it off and explain the situation then it would be fine.
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